September 30, 2016 MDT Pro Tips A.M.
MDT AlertWhile the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to six-month time frame, Mad Day Trader, provided by Bill Davis, will exploit money-making opportunities over a brief ten minute to three day window. It is ideally suited for day traders, but can also be used by long-term investors to improve market timing for entry and exit points.
GOGO? Long at $19.93
Total Premium collected - $1.95
ASNA Long at $14.20
Total Premium collected - $.75
ETE Long $14.05
Total Premium collected - $2.80
P Long $13.38
Total Premium collected - $1.36
DUST Long $4.50
Total Premium collected - $.70
FCX Long $12.45
Total Premium collected - $.24
CIEN Long Oct 21-$22 Call - $1.39
CIEN Short Sept 30th - $24.50 Call - ($.36)
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The short $24.50 call on CIEN will no doubt expire today because it is trading right around the long call
strike price.?
The second position is the short $17 call on ETE. ETE is trading about 40 cents under the strike price. If it closes under $17, the calls will expire worthless.
And the final position is the short $14 call on P. P is trading about 14 cents above the strike price, so the call is in the money.
I will sent a separate email with the details before the close if adjustments need to be made on ETE or P.
Yesterday saw the markets sell off, with the S & P 500 closing to the downside 20.24 points.
With the VIX once again back under the major 12.50 level, you can expect volatility to creep back into the markets.? And that is what happened yesterday.
For you short term traders, the VIX yesterday pointed the way to a sell off.
If you look at an intraday chart of the VIX, you can see that it dropped off the open and then took out 12.50.
There was a pullback that stalled right at 12.45, just 5 cents under the 12.50 level.? That was 12:20 EST.
From there it ran up the next major level, which was 15.63.
As this was going on, the SPY peaked out at 216.62 and dropped to 214.04 in about an hour and half.
The SPY dropped 2.58 during this swing.? And the VIX showed you the way.
I will show these charts on the next webinar.
Continue to follow the VIX for reversals in the market.
Here are the key levels for the markets.
$VIX:
Major level - 18.75 *
Minor level - 17.96 *
Minor level - 16.41
Major level - 15.63
Minor level - 14.85
Minor level - 13.28
Major level - 12.50
Minor level - 11.72
The VIX spiked up to the 15.63 level, before closing at 14.02.
The minor levels to watch are 14.85 and 16.41
14.06 is also a minor level to watch.? And with the VIX closing under that level, I suspect it should be key today.
Watch where the VIX opens relative to 14.06. An open under it, it should offer resistance. It should offer support if it opens above it.
S & P 500 Cash Index ($SPX):
Major level - 2,250.00
Minor level - 2,234.38
Minor level - 2,203.12
Major level - 2,187.50
Minor level - 2,171.88
Minor level - 2,140.62 *
Major level - 2,125.00 *
Minor level - 2,109.38
Minor level - 2,078.12
Major level - 2,062.50
The S & P 500 got just above the 2,171.88 level before selling off.
2,148.40 should offer support.? And 2,164 may offer some resistance today.
Range bound at the moment between the 2,187.50 and 2,125 levels.
Nasd 100 (QQQ):?
Major level - 121.88
Minor level - 121.10
Minor level - 119.53
Major level - 118.75 *
Minor level - 117.97 *
Minor level - 116.41 *
Major level - 115.63
Minor level - 114.84
Minor level - 113.28
Major level - 112.50
118.75 is proving to be tough to clear. 118.55 could offer resistance.
The minor 116.41 level should offer support.
At this point, the 115.63 level should offer major support on a pullback.?
TLT:?
Major level - 140.63
Minor level - 139.85
Minor level - 138.28
Major level - 137.50 *
Minor level - 136.72 *
Minor level - 135.16
Major level - 134.38
Minor level - 133.60
Minor level - 132.03
Major level - 131.25
140.63 should be the objective for the TLT.
138.28 should be minor support.? And 139.06 could offer resistance.
GLD:
Major level - 131.25
Minor level - 130.46
Minor level - 128.91
Major level - 128.13
Minor level - 127.35 *
Minor level - 125.78 *
Major level - 125.00 *
Minor level - 124.22
The GLD stopped 54 cents above the 125 level. If the GLD closes today above 125.78. I would expect a retest of 128.
126.55 should offer minor resistance.? Minor support should be at 125.39.
XLE:
Major level - 75.00
Minor level - 74.22
Minor level - 72.66
Major level - 71.88
Minor level - 71.10
Minor level - 69.53 *
Major level - 68.75 *
Minor level - 67.96 *
Minor level - 66.41
Major level - 65.63
The XLE had a pause after the large upmove from the day before.
Objective now should be to 71.88.
69.52 should offer minor support.? And 71.09 could offer resistance.
FXY:
Major level: 96.88
Major level: 96.09 *
Major level: 95.31
Major level: 94.53
Major level: 93.75
Major level: 92.97
Major level: 92.19
94.53 should be tested.? However, watch 95.31.? If the FXY opens above that level, it should offer support.
Resistance should be at 95.90.
AAPL:
Major levels for Apple are 118.75, 115.63, 112.50, 106.25, 100, 93.75,? and 87.50.
Apple continues to bounce around the 112.50 level.
Expect more volatility before Apple begins to move again. 111.72 should offer minor support.
113.28 should be minor resistance.
Watch list:
Bullish Stocks: AMZN, NTES, BIDU, DPZ, FLT, EW, BABA, ADBE, MA, WDAY, V, NVDA, SRPT, DLB, PTC
Bearish Stocks:? VRTX, TGT, LEN, HRI, CBI, HFC, TILE, SHLD, SRCL
?
Be sure
to check earnings release dates.